The FSA's key aims include maintaining efficient, orderly and clean financial markets. In the view of the FSA, achievement of that aim requires large players in financial markets to have regard to the likely consequences of their trading strategies in the market concerned (for example, the implications for liquidity, spreads and the market's general stability). This is quite separate from whether or not specific FSA Principles or Rules have been infringed.
Background
- The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection of consumers; and fighting financial crime.
- The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.
- The Citigroup entity which is the subject of the FSA's investigation is Citigroup Global Markets Limited (CGML).